These factors point to a bullish close for Ethereum (ETH) price above $3000 towards the end of Q1 2022!

1648032470 Ethereum and BNB price.webp

The crypto world has seen remarkable euphoric moves over the weekend, leading to the market cap hitting its $2 trillion milestone. The greener numbers were evident with prominent digital assets such as Bitcoin and Ethereum. The largest altcoin outperformed BTC in its gains, pushing its price to around $3,000.

However, the ecstatic numbers on the price chart have now returned to basics. That said, the talks around Ethereum were significant given the rapidly approaching quarter. And the merger with the Proof-Of-Stake (PoS) consensus mechanism. Successively, investors and traders are now evaluating the on-chain analytics of the digital asset.

Ethereum’s circulation is falling

The largest altcoin has witnessed a remarkable surge in social disclosure, following a 15% return. The double-digit spike has made its way, following BTC’s run, which saw fuel come in from the Goldman Sachs announcement. That said, despite the presence of volatility, the average coin value of ETH continues to grow steadily, indicating an accumulation trend.

Coming to the circulation front, the numbers have fallen in recent times. According to Santiment, the movement of numbers per day is currently around 758k. That’s a wider margin than the 1.85M spikes. Conversely, daily active addresses have seen bigger spikes lately. On March 18, we saw the number of peaks at 650.9k.

Successively, the movement can be seen coming from retailers and whale addresses. This could be a bullish sign as we have seen ETH reach its local high after the daily peak of active addresses. Conversely, ETH has witnessed significant shorts, which have worked in favor of price.

More ETH outflows from the exchanges

The daily on-chain net flow of ETH is currently at -$100.9 million. With additions coming from an outflow of $1.0 billion, compared to an inflow of $918.6 million. As a result, Into the Block had recently quoted that 180,000+ ETH units were withdrawn from the exchanges on March 15th. That is the largest outflow since the beginning of the year.

In succession, a similar event of such magnitude in the past had led to a 15% increase in no more than 10 days. And we’ve seen things predominate in a similar trend. That said, dull whale trades, MVRV ratio, and funding rates justify the skepticism that pushed ETH back to square one.

Ethereum (ETH) Price Analysis!

The ETH price at the time of printing is changing hands at $2,952.00 with a negative gain of 1.8%. While the market cap hovers around $354,147,072,301. Round the clock trading volume is down 27.03% to $14,075,700,667. The ETH price ranges in the 24-hour range from $2,933.47 to $3,022.66.

The digital asset should remain at current levels as a bearish trend could drag prices towards $2,800. Further running out of steam could cause the price to slide back to $2,600. On the upside, compound numbers bring the price back to $3,000. That said, trudging past stations at $3,100, ETH could revisit crucial resistance at $3,200.

In summary, though certain metrics need a boost to help ETH price forecasts thrive. Social sentiment has risen, given the merger, which could possibly take place in the second quarter. That said, we can consider ETH’s price close Q1 trade at $3,000, once BTC shows its strengths again.

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